Influence of extrinsic motivation on employee’s performance in Moi Teaching and Referral hospital Eldoret, Kenya

Abstract

Employee extrinsic motivation in Kenya‟s health sector is one major issue that needs to be tackled in a manner that satisfies employees with their current employment and allows them to develop a loyalty towards the organizations they work for. There are numerous factors that influence employee motivation in such a dynamic environment. One important case is that of the health care sector, which has failed to keep its employee turnover rates low. High employee turnover comes as an unfruitful cost to the employers and it is important to deal with such a cost in order to remain competitive. It is for this reason that this study sought to investigate the influence of extrinsic motivation on employee‟s performance in Moi Teaching and Referral Hospital in Eldoret, Kenya. To achieve this, the study employed the following objectives to establish the influence of salary on employee performance in Moi Teaching and Referral Hospital, to determine the influence of staff promotion on employee performance in Moi Teaching and Referral Hospital, to establish the influence of training on employee performance in Moi Teaching and Referral Hospital and to examine the influence of working environment on employee performance in Moi Teaching and Referral Hospital. Maslow theory of need was employed in this research. The research design was a case study. The study focused on a number of departments in the organization for generalization of the employee work performance. Simple random sampling was used to select a sample 217 nurses from 500 nurses in MTRH. Purposive sampling technique was used in selecting institution and 28 Head of departments in the hospital. Structured questionnaires were used as data collection procedures. The data from the study were analyzed using SPSS VER 20.0. Descriptive statistics in form frequencies, percentages, and cross tabulation were used. The study findings revealed that majority of the respondents 83.83% (mean= 4.19) agreed that better pay motivates employees to work harder, 75.95% (mean= 3.90) agreed that good pay keeps employees focused, 77.88% (mean=3.89) agreed that Staff promotions motivates employees to stay with an Organization, 76.73% (mean= 3.84) agreed that Employee training shows an organization values its employee, while another 82.53% (mean= 4.13) agreed that Employee performance is high when employees are motivated. The study therefore concludes that is important however to continuously measure employee motivational levels to proactively anticipate areas of concern that might lead to a decline in the levels of motivation within the organisation, which could have an adverse effect on the profitability of the organisation due to reduction in overall productivity and performance. The study recommends that Management of MTRH need to ensure that staff salaries are reviewed annually to ensure that staff wages are market related and MTRH must be able to communicate their past, present, and future plans to employees so they are secure with the strength and stability of the organization.